6234-S AMH FII H4603.1

SSB 6234 - H COMM AMD ADOPTED 3/6/02

By Committee on Financial Institutions & Insurance

    Strike everything after the enacting clause and insert the following:

    "Sec. 1.  RCW 48.18.140 and 1989 c 25 s 2 are each amended to read as follows:

    (1) The written instrument, in which a contract of insurance is set forth, is the policy.

    (2) A policy shall specify:

    (a) The names of the parties to the contract.  The insurer's name shall be clearly shown in the policy.

    (b) The subject of the insurance.

    (c) The risk insured against.

    (d) The time at which the insurance thereunder takes effect and the period during which the insurance is to continue.

    (e) A statement of the premium, and if other than life, disability, or title insurance, the premium rate where applicable.

    (f) The conditions pertaining to the insurance.

    (3) If under the contract the exact amount of premiums is determinable only at termination of the contract, a statement of the basis and rates upon which the final premium is to be determined and paid shall be specified in the policy.

    (4)(a) Periodic payment plans for private passenger automobile insurance shall allow a specific day of the month for a due date for payment of premiums.  A late charge may not be required if payment is received within five days of the date payment is due.

(b) The commissioner shall adopt rules to implement this subsection and shall take no disciplinary action against an insurer until ninety days after the effective date of the rule.

(5) This section shall not apply to surety insurance contracts."

SSB 6234 - H COMM AMD

By Committee on Financial Institutions & Insurance

    On page 1, line 2 of the title, after "premiums;" strike the remainder of the title and insert "and amending RCW 48.18.140."

EFFECT:  Requires that periodic payment plans state a specific day of the month that a premium payment is due; deletes requirement that insurers come into compliance with the act within one day of the effective date of the act; and allows insurers 90 days to come into compliance with the administrative rules adopted to implement the legislation.

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